NCLT blocks merger of Indiabulls co, Embassy units

NEW DELHI: The National Company Law Tribunal (NCLT), Chandigarh bench, has withheld the merger of realty firm Embassy Group’s certain residential and commercial projects with Indiabulls Real Estate, which resulted in a 20% fall in the shares of the Indiabulls group firm.Mumbai­based Indiabulls Real Estate said it will decide on the next course of action after reading the judgment and will explore options, including filing an appeal against the NCLT order.In August 2020, Bengaluru-based realty firm Embassy Group entered into an agreement to merge certain residential and commercial projects with Indiabulls Real Estate through a cashless scheme of amalgamation. Embassy Group will become the promoter of the merged entity. Shares of Indiabulls Real Estate tanked 20% to settle at Rs 55.3 apiece on the BSE. Its market valuation fell by Rs 749 crore to Rs 2,998 crore. Indiabulls Real Estate said the merger scheme has already been sanctioned by the NCLT, Bengaluru bench, which has jurisdiction over NAM Estates and Embassy One, in April 2022.“The Chandigarh bench, which has jurisdiction over Indiabulls, had raised concerns based on objections cited by the I­T department to the merger. These objections do not impact the merger in a significant manner and had addressed the same before the NCLT,” Indiabulls said.